Question
Economy Laundry Company had the following transactions in August: Aug. 1 Issued capital stock for cash, $ 150,000. 3 Borrowed $ 40,000 from the bank
Economy Laundry Company had the following transactions in August:
Aug. 1 Issued capital stock for cash, $ 150,000.
3 Borrowed $ 40,000 from the bank on a note.
4 Purchased cleaning equipment for $ 25,000 cash.
6 Performed services for customers who promised to pay later, $ 16,000.
7 Paid this months rent on a building, $ 2,800.
10 Collections were made for the services performed on August 6, $ 3,200.
14 Supplies were purchased on account for use this month, $ 3,000.
17 A bill for $ 400 was received for utilities for this month.
25 Laundry services were performed for customers who paid immediately, $ 22,000.
31 Paid cash dividend, $ 2,000.
Required:
Prepare journal entries for these transactions.
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